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The iPhone maker may have to allow competitors to run their own app stores on iPhones in the UK, following a ruling from the competition regulator.

This represents a major shift to the company's infamous "closed system" where applications can only be installed from its own App Store.

But the Competition and Markets Authority has designated both the tech giants as having "dominant market position" - effectively saying they have significant control over mobile platforms.

Watchdog Findings

The regulator said the tech firms "may be limiting innovation and market rivalry".

But the authority emphasized it did not "determine or presume misconduct" from the firms.

"The app economy contributes 1.5% of the British economy and sustains around 400,000 jobs, which is why it's essential these sectors function properly for business," commented a senior official from the competition authority.

Approximately ninety to one hundred percent of UK mobile devices run on Apple or Google's mobile platforms, creating what the regulator calls an "virtual monopoly".

Based on current data, nearly half of UK mobile owners own an Apple device - which runs the iOS operating system - with the vast majority of the remaining users using Google's Android.

The Company's Response

The regulatory probe focused on how prominent Apple and Google's own applications are versus rivals - as well as their browsers and operating systems.

It is unclear what changes the authority will seek to implement, but earlier it published guidelines outlining potential measures it could take.

These comprise mandating it to be easier for people to switch between Apple and Android phones, and for both firms to rank apps "in a fair, objective and transparent manner" in their app stores.

The Cupertino company particularly may be compelled to allow alternative app stores on its devices, and enable people to download programs straight from developer sites.

This would mirror comparable regulations in the EU, which previously took action against Apple for restrictive practices.

The technology firm warned the United Kingdom could face delays to receiving updates - as has happened in the EU - which the organization blames on heavy regulation.

For example, some Apple Intelligence capabilities which have been launched in other parts of the world are not accessible in the European market.

"We faces fierce competition in every market where we operate, and we strive continuously to create the finest offerings, services and user experience," the company said in a release.

"The UK's adoption of EU-style rules would weaken that, leaving users with weaker privacy and safety, slower availability to latest functions, and a fragmented, less seamless user journey."

The Search Giant's Standpoint

Google device owners can currently use third-party app stores - though critics say they are not as user-friendly as the company's official Play Store.

The CMA's roadmap said the search company may have to "modify the interface" of installing applications directly from online sources, as well as "eliminate barriers" when using alternative app stores.

"We simply do not see the justification for the current classification," a company competition lead remarked.

The executive said "most" of Google device owners use alternative app stores or download apps straight from a developer's website, and asserted there is a much wider selection of apps available for Google device owners compared to those on Apple devices.

"Currently available are 24,000 Google-compatible devices from thirteen hundred device makers worldwide, facing intense competition from iOS in the United Kingdom," the representative added.

Google's platform is an freely available software, which means developers can utilize and develop on top of it for free.

Google contends this means it promotes market competition.

But consumer groups said restrictions on these firms' dominance in other countries "are already helping enterprises to develop and giving consumers more options".

"The companies' control is now causing real harm by limiting options for users and competition for businesses," commented a consumer advocate.